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Advisers ‘concerned’ late compliance changes will impact FASEA exam

Incoming compliance changes by ASIC have raised concern for financial advisers preparing to take the FASEA exam in just a few weeks.

The changes come into effect on 1 July ahead of the commencement of the FASEA exam on 15 July. Speaking to ifa, myIntegrity in Practice principal Joel Ronchi said FASEA should clarify if questions about the changes will be included in the upcoming exam.

“There a lot of Advisers, some of whom have failed multiple times, concerned about not being up to speed with the new requirements, especially given the relatively late release of clarifying information from ASIC,” Mr Ronchi said.

“FASEA have stated in the past that Advisers need to know the ‘current legislation’ when sitting a FASEA Exam; however, given the circumstances I would think it incumbent on FASEA to clarify the position for the July exam (at the very least).”

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Responding to ifa on Tuesday, FASEA said it “does not disclose questions” in any exam.

A FASEA spokesperson said in a statement: “However the exam assesses relevant providers competency in the practical application of the following three knowledge areas:
 
1.       Financial advice regulatory and legal requirements (including Corporations Act chapter 7, AML, Privacy and Tax Agents Services Act [TASA] 2009).
2.       Financial advice construction – suitability of advice aligned to different consumer groups, incorporating consumer behaviour and decision-making.
3.       Applied ethical and professional reasoning and communication – incorporating FASEA Code of Ethics and code monitoring bodies.
 
“Relevant providers are required to have an understanding of current regulatory requirements including those that are effective from 1 July 2021.”

It comes just a week after Mr Ronchi encouraged advisers who previously failed the FASEA exam to “have a crack at seeking a remark.

“For advisers who have failed, I talk with them and ask them how they felt they went with the exam,” he said.

“If they say they felt they did okay or even really good and they don’t have the comment on their feedback saying a remark is not warranted, then if it was me, I’d have a crack.

Advisers ‘concerned’ late compliance changes will impact FASEA exam
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